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Picking SFH Townhouse Upgrades

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voicev13

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Apr 6, 2009
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I purchased a new construct freehold townhouse as an investment. 3 bedrooms, 2.5 baths, single car garage w/ parking for 2 cars. It is time for me to pick upgrades. I want to keep my costs low however I still want to pick things for the home that are desireable for renters and eventually (in 15-20 years) resale. One thing I plan to add is the connecting door to the garage. Other things I`m not sure about are the rough in bathroom in the basement, oak stairs, central vac....any other input and why it is/isn`t necessary is appreciated.

Thank you!
 
Considering you are planing on keeping this place 15-20 years I would not upgrade anything that will not increase the rental value of the home.

In 20 years nearly everything will need to be replaced as renters will ultimately destroy everything.
Items such as central vac are homeowner type luxuries and will only require regular replacement in a rental property.
Keep everything basic and functional. Always consider the bottom line and especially the fact that you will not be living there.
Save your money until you are ready to sell. Do the upgrades at that time as it will be more cost efficient, will be necessary anyway and they will be up to date.
Rental properties are about making money from people that very often have little respect for the owners property so must be basic and rugged.

Save your money forget the upgrades.
 
I like Greg`s post except I`d add for the type of property you`re purchasing go with:
Door to garage you mentioned
Carpet free and upgrade to ceramic in washrooms
Dishwasher
 
Congratulations on your decision to buy new. You`ll get the better tenants and the better rental rates. I just purcased 3 new townhomes myself thru a builder and am working on 2 more. I negotiated $6,500 of free upgrades plus CAC in the deals. I agree not to go overboard but certain upgrades can make your life easier. I chose oak staircase, hardwood in the living room. & upper landing. I would not pay the builders prices or add to the price with these features if it`s too expensive. Mine also came with the door to garage. CAC is a must, 1.5 ton should be $1600 private. I am not keeping beyond 10 years as that is when the the maintenance and updating comes due. Consider rolling them over to new ones again to avoid the depreciation, updating, maintenance issues and to attract the best rents and best cream of the crop Tenants. Best to own rentals from a position of strength.
 
Great feedback. Thanks. I`ll keep it simple. The townhouse comes with a new fridge stove and dishwasher. I`ll use the upgrade credit on the entrance to garage, oak stairs and rough in since the latter can`t be added structurally later. Ceramics are standard in bathrooms so won`t incur extra costs.luckyluciano, do you plan to have the air ducts cleaned before tenants move in? Or are you going to leave it for them to do?
 
Greg, Great input!

Adam, why not fiber/vinyl floor in bathroom that looks great and is like 1/10 the cost!? not that I recommend, just curious to know.

Thanks.
 
QUOTE (investmart @ Oct 3 2009, 09:56 PM) Greg, Great input!

Adam, why not fiber/vinyl floor in bathroom that looks great and is like 1/10 the cost!? not that I recommend, just curious to know.

Thanks.


Vinyl floor looks great according to whom? You have to analyse your market competition. If others have ceramic and you use vinyl you`ll attract b & c type tenants. Good tenants can tell the difference. In a boom like we are experiencing right now, you can get away with just about anything. In a slowdown, where money is tight, rental supply skyrockets if you have the best properties with the best finished you will have the best tenants and rent quickly while others stay empty. Real Estate is long term so I think long term. This interest rate boom will not last forever.
 
Durability - think rips in flooring and water issues
Looks

QUOTE (investmart @ Oct 3 2009, 09:56 PM) Greg, Great input!

Adam, why not fiber/vinyl floor in bathroom that looks great and is like 1/10 the cost!? not that I recommend, just curious to know.

Thanks.
 
You also have to consider the possibility of replacing cracked, chipped or out dated tiles at time of sale.
Vinyl is perfectly acceptable for kitchen bathroom and laundry in any any level of rental unit excluding possibly executive.
 
Hi Greg
I`m familiar with what the poster is doing and for this type of property future purchasers and renters have a preference for ceramic.
 
QUOTE (housingrental @ Oct 2 2009, 07:47 AM) Carpet free and upgrade to ceramic in washrooms


What would you put down instead of carpet in bedrooms, on stairs, etc?
 
Laminate
Depending on property hardwood might be appropriate in places.
The property she`s buying laminate should be fine
For resale it might even make sense to go hardwood in master only
For the stairs though going carpet is OK.

QUOTE (Jessome @ Oct 5 2009, 12:34 PM) What would you put down instead of carpet in bedrooms, on stairs, etc?
 
I like oak staircases, in bedrooms I am fine with broadloom as it is a small area. I am not so concerned with how the tenants. Maintain the property as I am tough an upfront with them. I own newer propertie, so I tell them my partners and I have video taped the interior/exterior. I am giving it to you tip top and expect it back the same except for reasonable wear an tear. I expect it back the same way.

QUOTE (Jessome @ Oct 5 2009, 12:34 PM) What would you put down instead of carpet in bedrooms, on stairs, etc?
 
Vinyl is subpar and second class where I am buying. Just like ensuite baths! Better quality tenants expect them. Just like garage door accesses to the backyards as opposed to dragging the lawnmower thru the house. Many corners can be cut in an effort to save money but in the end it`s mostly reflected in the rent an the type of people you allow into your life.

QUOTE (invst4profit @ Oct 4 2009, 01:27 PM) You also have to consider the possibility of replacing cracked, chipped or out dated tiles at time of sale. Vinyl is perfectly acceptable for kitchen bathroom and laundry in any any level of rental unit excluding possibly executive.
 
QUOTE (luckyluciano @ Oct 4 2009, 06:01 AM) Vinyl floor looks great according to whom? You have to analyse your market competition. If others have ceramic and you use vinyl you`ll attract b & c type tenants. Good tenants can tell the difference. In a boom like we are experiencing right now, you can get away with just about anything. In a slowdown, where money is tight, rental supply skyrockets if you have the best properties with the best finished you will have the best tenants and rent quickly while others stay empty. Real Estate is long term so I think long term. This interest rate boom will not last forever.


Lucky, `invst4profit` answered your question above.

Remember: quality is a relative term. Good quality has different meaning to different people. For our RE discussion change the word people to neighborhoods.

For many investors, buying in class B or C neighborhoods (but not D) is much better than class A. not sure why you struggle with the concept so much.
Perhaps you involve too much emotions forgetting after all.. it is a NUMBERS GAME!

Cheers.
 
QUOTE (lucky luciano @ Oct 5 2009, 08:04 PM) Vinyl is subpar and second class where I am buying. Just like ensuite baths! Better quality tenants expect them. Just like garage door accesses to the backyards as opposed to dragging the lawnmower thru the house. Many corners can be cut in an effort to save money but in the end it`s mostly reflected in the rent an the type of people you allow into your life.


Your properties and your choice of tenants seem a bit too high brow for my taste. Silver spoon mentality.
I am beginning to understand why you are struggling to understand the basics of income investment properties.
 
Cost
Future purchase is likely looking to live in property
They`ll prefer hardwood.
Are they willing to want to pay more to have it in kids bedrooms? Not for this property type.
A 3000sqft detached house? Maybe.

QUOTE (voicev13 @ Oct 5 2009, 07:34 PM) Thanks Adam...Interesting, why hardwood in the master only?
 
QUOTE (invst4profit @ Oct 5 2009, 11:35 PM) Your properties and your choice of tenants seem a bit too high brow for my taste. Silver spoon mentality.
I am beginning to understand why you are struggling to understand the basics of income investment properties.


Of course you are entitled to your opinion. Don`t forget I list, sell and rent real estate for a living. I deal with and talk to investors all the time. I have clients I have sold income properties to 24 years ago. I used to think like you...look for deals mentality. It`s really very logical really. I have wasted alot of time over the years on thousands of appointments and realize what people/tenants want. Again, I am referring to my marketplace only as I stated above....vinyl is subpar in MY MARKET PLACE! The rentals I have purchased have ensuite baths, ceramics, hardwood floors, larger square footage than the competition. This way I attract the tenants who can afford to pay a little more, have better jobs, have more income, better cars that hopefully don`t leak oil. The ladies that live there are not plastered with tattoos and don`t work in strip clubs. They are school teachers, business owners etc. Again I am speaking of MY MARKEY PLACE where new construction dominated & rules. Quality people are selling their 10-40 year homes to move into new construction.....new construction rules... newer kitchen, baths, ceramic colors etc. The higher income earners will pay more to get what they want. I can clearly see the townhomes without ensuites for example rent for less and sell for less. With a little thinking into the future it`s plain to see when my properties are 10+ years old there will be newer properties built with ever newer colors, materials and standards and my propeties will be less in demand, meaning less rent, less resale value, lower quality tenants. Are you saying demand does not affect you? I have owned townhouses, condos, detached, duplexes, acreage, office buildings, prestige industrial, retail commercial. If you think I struggle to understand the basics you are jugemental and mistaken.
 
Lukcy - You have a point but at what cost to what rent gained. Note location is also a draw. Many quality renters also prefer mature neighborhoods. Large trees, beautiful streetscapes, fast walks to shops, parks... etc..

Also Lucky - You`ve made a few posts that you reference your success in real estate. Please share it with the forum so we can understand where you`re coming from. Every other poster here isn`t hiding themselves - What is your name / location?
 
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